[SINGAPORE] Property company Wee Hur on Thursday (Aug 14) posted a 42 per cent decline in net profit to S$38.7 million for the six months ended Jun 30, 2025, from S$66.5 million in the year-ago period.
This translated to an earnings per share (EPS) of S$0.0421, 42 per cent down from an EPS of S$0.0723 in H1 2024.
The decline in the bottom line was attributed to the absence of S$59.9 million in profit contributions from associates and joint ventures after the group’s disposal of part of its purpose-built student accommodation (PBSA) portfolio under the Wee Hur PBSA Master Trust (Fund I).
In April, the group completed the disposal of seven PBSA properties under the fund for A$1.6 billion (S$1.3 billion). The disposal, announced in December, enables it to realise a significant part of its investment in the fund and reallocate capital to other investments, the group said.
Goh Yeow Lian, executive chairman and managing director of Wee Hur, remarked that the company’s core business continued to do well in H1 2025, supported by strong execution and sustained market demand.
This comes as its adjusted net profit – after adjusting for other gains and losses, one-off items under other income and share of profits from associates – rose 164 per cent to S$61.7 million, from S$23.4 million. This reflects the improved performance of its core business segments of property development, construction and workers’ dormitories, the group said.
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Its share of results from associates and joint ventures declined significantly. The group recorded a loss of S$25,000 for the six months, compared with a S$59.9 million profit for the year-ago period.
Revenue rose 43 per cent to S$156 million from S$109.1 million, driven by strong performances in the property development and fund management segments, despite a decline in the construction segment.
The fund management segment’s revenue climbed to S$40.3 million from S$2.3 million, mainly due to a one-off performance and disposal fee from the disposal of the PBSA assets under the Wee Hur PBSA Master Trust (Fund I).
The Singapore property development segment was the largest revenue contributor for the period. The segment’s revenue rose 158 per cent to S$47 million from S$18.2 million in H1 2024, amid progressive recognition of revenue from the Bartley Vue project, which hit major construction milestones during this period
Revenue from the workers’ domitory segment fell about 2 per cent year on year to S$42 million from S$42.8 million, following a slight decline in average occupancy rates.
The group recorded other losses totalling S$22.8 million in H1 2025, widening from S$8.2 million in the previous corresponding period, due to higher foreign exchange losses.
The board declared an interim cash dividend of S$0.005 per ordinary share for H1, an increase from S$0.002 in the year-ago period. It will be paid on Sep 5, after the book closure date of Aug 22.
Following the partial disposal of the Wee Hur PBSA Master Trust (Fund I), the group’s cash balance stood at S$277.1 million. Its gearing ratio was 13 per cent.
With the disposal and the added funding flexibility derived from its S$500 million medium-term note programme launched in May, the group is in a “strong financial position” to strategically redeploy capital to its core businesses, Goh said.
Looking ahead, the company intends to strengthen its fund management capabilities and capitalise on opportunities in the Australian PBSA sector. The sector faces strong tailwinds, such as the sustained growth of international student numbers and Australia’s persistent housing shortage.
The counter finished Thursday at S$0.68, down S$0.01 or 1.5 per cent, before the announcement.
